Zhejiang Provincial Energy Group

ZHEJIANG PROVINCIAL ENERGY GROUP

Yang Jingdong

November 2017 ZHEJIANG ENERGY GROUP INTRODUCTION

A m o n g the provincial energy enterprises, Zhejiang Energy Group has

the largest installed capacity b y 32020MW ,accounting f o r 50% in Z h e j i a n g ) , t h e biggest asset scale and the most comprehensive energy t y p e s .

ELECTRIC FINANCIAL & OIL NATURAL GAS POWER REAL ESTATE

Six Main Two Supportive Sectors Sectors

RENEWABLE ENERGY COAL REGIONAL ENERGY SERVICE ENERGY ZHEJIANG ENERGY GROUP INTRODUCTION

Holding or managing 200 enterprises Owning two A-share listed companies, Zhejiang Zheneng Electric Power （600023）& Ningbo Marine Group （600798） 2016

GENERATING COAL SUPPLY NATURAL GAS SUPPLY 120.1 B kwh 49.42 M tons 7.225 BCM

30% capacity in Zhejiang 45% of coal consumption in Zhejiang 85% of natural gas consumption In Zhejiang BY JULY 2017

TOTAL ASSET NET ASSET ￥183.8B ￥104.2B Listed on Top 500 Enterprises in China 2016, ranked 61st among the Most Efficient Enterprises. ZHEJIANG ENERGY GROUP INTRODUCTION

ZHEJIANG ENERGY GROUP INTRODUCTION

Zhejiang Energy Natural Gas Group

Zhejiang Provincial Natural Zhejiang Jinqvli Natural Gas Zhejiang Zheneng Natural Zhejiang Provincial Energy Group Gas Exploration Co.,Ltd Co.,Ltd Gas Pipeline Co.,Ltd City Gas Co.,Ltd (holding shares of 40%) (wholly owned) (wholly owned) (wholly owned)(holding 25 city gas companies）

Zhejiang Zheneng Oil Zhejiang Sinopec CNOOC Zhejiang LNG Project Zhoushan Gas Trading New Energy Co.,Ltd Zheneng Oil Ningbo LNG Co.,Ltd Preparation Office Market Co., Ltd Development Co.,Ltd (Wholly owned) (shares of 29%) （holding 51%） (shares of 50%) Holding 9 Major Enterprises 1st West Gas (Year 2004) ZHEJIANG ENERGY GROUP INTRODUCTION

Ｓ Huzhou Ｓ Gas from Sichuan Jiaxing M (Year 2010) M Importing LNG

Hangzhou Ningbo (Year 2012) Ｓ Shaoxing Ｓ Multiple gas sources,

Jinhua One pipeline network Qvzhou S Taizhou M Gas from East China Sea 2rd West Gas Lishui （Year 2005） (Year 2012)

Existing Pipelines M

Under construction Wenzhou

Planned Pipelines Lishui 36-1Sea Gas Ｓ Starting Station M （Year 2014） M Terminal Station

Transmission Station ZHEJIANG ENERGY GROUP INTRODUCTION

Ｓ嘉兴市湖州市Ｓ M M Pipeline Gas

绍兴市杭州市宁波市ＳＳ

金华市衢州市 S

M 台州市 Directly supply to 59 end users, including 22 power plant users 丽水市 Generating Capacity of Gas Power Plant 12400MW Existing Pipelines M 36 city users 1 large industry enterprise 温州市 Under construction (Sinopec Zhenhai Refinery) Planned Pipelines Sales Volume : 7.225BCM pipeline gas, estimated 8.6 BCM by the Ｓ Starting Station M end of 2017 M Terminal Station An increase of 19.4% YoY

Transmission Station Zhejiang-Shanghai Linking Pipeline ZHEJIANG ENERGY GROUP INTRODUCTION

Ｓ嘉兴市 Hangzhou-Huzhou 湖州市Ｓ Pipeline（2004） M Hangzhou-Jiaxing M Pipeline（2010）

绍兴市杭州市宁波市 436 km pipelines is newly put into operation in 2017 Ｓ Hangzhou- Ｓ LNG Pipeline Sept. 2017, 1477 km pipelines, 59 transmission station, Ningbo （2012） Pipeline 68 valve vault （2006）￥11.3 B investment 金华市 S 衢州市 397 km pipelines under construction

M 台州市 15 counties(city/district) newly added to the network Jinhua-Lishui- Wenzhou 70% of the counties(city/district) in Zhejiang has access 丽水市 Ningbo-Taizhou- Pipeline(can be put Wenzhou Existing Pipelines M to natural gas into operation) Pipeline(2017) 温州市 Under construction

Planned Pipelines Ｓ Starting Station M M Terminal Station

Transmission Station Zhejiang Province Natural Gas Network Plan by 2020 （section） ZHEJIANG ENERGY GROUP INTRODUCTION Zhejiang-Shanghai Linking Ｓ Pipeline 湖州市Ｓ嘉兴市 M M Hangzhou-Ningbo Twinning Pipeline 绍兴市杭州市宁波市 Pipeline gas in Zhejiang is up to 9.5 BCM in 2018 ＳＳ Estimated consumption will be 16 BCM in 2020 5.2% now 10% in 2020 as primary energy During the 13th Five Year Plan, 18 sub-pipeline projects will 金华市 S 衢州市 be built by Zhejiang Energy Group, reaching a total length of

M 983.5 km 台州市 Total investment will be about 10.9 B Yuan

Existing Pipelines 丽水市 M All counties (city/district) in Zhejiang Province will be covered Under construction 温州市 by the pipeline network Building Pipeline Planned Pipelines Ｓ Starting Station M

M Terminal Station Zhejiang-Fujian Linking Pipeline Transmission Station ZHEJIANG ENERGY GROUP INTRODUCTION

Conclusion

Pipeline gas brought to Zhejiang since 2004, the market is well developed and rapidly growing.

"Multiple gas sources, one pipeline network" will set sound foundation to the market development.

Continuing infrastructure construction that covering all counties sustains the rapid market growth. GAS FUELS ZHEJIANG BENEFICIAL TO PEOPLE